$2.8M Gryphon Healthcare Settlement Ends Litigation Over Data Breach Discovered in Aug. 2024

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Gryphon Healthcare has agreed to a $2,800,000 settlement to resolve a class action lawsuit over a data breach discovered by the medical billing company in August 2024 that allegedly exposed the private information of its client’s patients to an unauthorized third party.

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The Gryphon Healthcare class action settlement received preliminary court approval on December 17, 2025 and covers all United States residents whose personal information was potentially exposed in the data breach, including those who received a written notice from Gryphon informing them of the cybersecurity incident. Settlement documents report that the private information of approximately 393,358 individuals may have been impacted by the data breach.  

The court-authorized website for the Gryphon Healthcare class action settlement can be found at GryphonHealthcareDataSettlement.com.

According to the settlement site, Gryphon Healthcare settlement class members who submit a timely, valid claim form have multiple options for reimbursement. Class members who submit with their claim form documented proof of out-of-pocket losses stemming from the breach are eligible to receive a one-time cash payment of up to $5,000.

Per the settlement site, covered expenses include losses due to identity theft or fraud, fees for credit reports or freezing/unfreezing credit, costs to replace IDs, and postage. The agreement outlines that all claims for out-of-pocket losses must be accompanied by proof such as bank statements, invoices, or receipts.

In lieu of a documented loss payment, the site reports that class members may instead file a claim to receive an alternative one-time cash payment of approximately $100. The settlement site notes that no proof or explanation is needed to claim this payment. The final amount of this cash payment may become pro-rated depending on the total number of valid claims filed, the agreement adds.

In addition to monetary benefits, all settlement class members are eligible to enroll in two free years of CyEX Medical Shield Complete, which includes monitoring for health insurance ID numbers, medical record numbers, and health savings account expenditures.

To submit a Gryphon Healthcare settlement claim form online, class members can head to this page and enter the unique ID and PIN as found on their copy of the settlement notice. Alternatively, class members can download a PDF claim form from the settlement site to print, fill out and return by mail to the address of the settlement administrator.

All Gryphon Healthcare settlement claim forms must be submitted online or postmarked no later than April 16, 2026.

Gryphon Healthcare has also agreed to implement stricter data security measures to better secure its systems and mitigate the risk of a future data breach.

The court will decide whether to grant the Gryphon Healthcare settlement final approval at a hearing on August 31, 2026. Compensation will begin to be distributed to class members only after final approval has been granted and any appeals have been resolved.

The Gryphon Healthcare class action lawsuit alleged that the medical billing service provider discovered a security lapse at one of its partner organizations on August 13, 2024 that allowed an unauthorized third party to access the patient health information of Gryphon’s clients. According to the settlement site, the sensitive information potentially implicated in the breach includes names, addresses, dates of birth, Social Security numbers, diagnosis information, health insurance information, prescription information, provider information and medical record numbers.

Head to ClassAction.org’s settlements page for a complete list of data breach settlements.